ACQUISITION OF HOLDINGS IN KAUNO TILTAI AND MODEST AUTHORISED

The Competition Council examined the applications filed by undertakings concerning the implementation of concentration and passed decisions in respect of the issued considered.

1. The resolution was adopted to permit UAB Kelesta to implement concentration by acquiring up to 100 percent of share of AB Kauno tiltai in accordance with the submitted application. It has been concluded that the degree of concentration in the relevant markets will not be affected, the intended transaction will not create or strengthen a dominant position or cause any lessening of competition in the relevant market.

UAB Kelesta, member of the group controlled by AB Invalda has indicated in its notification that the purpose of the acquisition is the investment into road and street building and repair, construction and maintenance of bridges, viaducts and tunnels with a view to ensure the yields on investment by developing the operations of the acquired undertaking. Following the implementation of the concentration the nature of the activity of AB „Kauno tiltai“ and its controlled undertakings will not change.

2. The Competition Council authorised the dairy UAB „Vilkyškių pieninė to implement the intended concentration by acquiring up to 100 percent of the shares of UAB „Modest in accordance with the submitted notification. The Competition Council assessed the intended transaction as horizontal concentration in the Lithuanian milk purchase market and the market for some dairy products. In the view of a very modest change in the degree of concentration in the relevant markets the transaction will not cause the creation or strengthening of a dominant position or any significant lessening of competition in the markets concerned.

The notifying undertaking indicated that the purpose of the concentration is, through the undertakings whose control is being acquired, to expand the activity in a different segment of the dairy sector, namely, production of fresh dairy products (milk, curds, cottage cheese, fresh cheese, sour cream, etc.). Following the concentration both undertakings will continue their operations: UAB „Vilkyškių pieninė - in the segment of milk purchase and processing into fermented cheese, and UAB Modest - in the market for milk purchase and processing of milk into fresh dairy products, with a special focus on the production of specific products, primarily, Mozzarela cheese.